Bitcoin has fallen more than 30% in recent weeks and trades near $87,000, with gold and silver pushing to fresh highs. Some analysts argue that this asset gap may mark a prelude to a broader upcycle rather than a warning signal. Bull Theory highlights a similarity to the 2020 pandemic period, when gold climbed from about $1,450 to $2,075 and silver from $12 to $29, while Bitcoin lingered in a $9,000–$12,000 range before surging to $64,800 in Q2 2021 as capital rotated into crypto.
The analyst believes the same capital rotation could recur in 2025, with this cycle featuring both liquidity and structural factors driving gains. This year, gold traded near $4,550 and silver around $84, while Bitcoin declined more than 30% from its October peak of $126,000 and remained below $90,000. This cycle reportedly hinges on liquidity plus structural catalysts, with the expectation that precious metals’ rise often precedes a shift into risk assets. Among the factors cited for 2026 are continued rate cuts, renewed central-bank liquidity, easing bank leverage, clearer crypto regulation, and more ETF offerings beyond Bitcoin, creating a more favorable environment than in prior cycles.
Looking at the near term, Bitcoin has bounced around the low-to-mid $80,000s recently and remains roughly 6% lower for the year, while gold is up sharply and silver leads gains among major assets. The ratio of Bitcoin to gold and silver has widened to multi-year lows, fueling views that Bitcoin might be relatively undervalued. The analyst cautions that a prolonged consolidation period is not necessarily a bear market start but could be a quiet prelude to a significant ascent. He also projected that if precious metals cool and funds rotate back into risk assets by 2026, Bitcoin price could rise more than fourfold.
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